2016 evolution of carriers offerings
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Findings across 50 states and DC 2016 exchange market remains in flux: Evolution of carriers and offerings CARRIER PARTICIPATION 1 McKinsey Center for U.S. Health System Reform MARKET VIEW Counting carriers unique at state level CONSUMER VIEW 4 Counting carriers at a county level WITHDRAWALS IN 2016 FROM STATES 50 NEW 2016 ENTRANTS TO STATES 31 TOTAL 2016 EXCHANGE CARRIERS 314 ARE SEEING AN EXIT BY A CARRIER IN THEIR COUNTY ARE SEEING A NEW ENTRANT IN THEIR COUNTY ARE SEEING A NET DECREASE IN CARRIERS IN THEIR COUNTY 3 ARE SEEING A NET INCREASE IN CARRIERS IN THEIR COUNTY 3 63% 47% 41% 16% WITHDRAWALS IN 2016 FROM COUNTIES BY STILL PRESENT ELSEWHERE IN STATE 2 275 NEW 2106 ENTRANTS TO COUNTIES WITH EXISTING PRESENCE ELSEWHERE IN STATE 2 631 = 10 CARRIERS As of 11.04.2015 Mix of carriers is continuing to change. 16% of consumers are seeing an increase in carriers, and nearly half of consumers are seeing a new entrant. 2016 exchange market remains in flux: Evolution of carriers and offerings I Page 1 of 4
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Transcript of 2016 evolution of carriers offerings
Findings across 50 states and DC
2016 exchange market remains in flux: Evolution of carriers and offerings
CARRIER PARTICIPATION1
McKinsey Center for U.S. Health System Reform
MARKET VIEWCounting carriers unique at state level
CONSUMER VIEW4
Counting carriers at a county level
WITHDRAWALS IN 2016 FROM STATES
50NEW 2016 ENTRANTS TO STATES
31
TOTAL 2016 EXCHANGE CARRIERS 314
ARE SEEING AN EXIT BY A CARRIER IN THEIR COUNTY ARE SEEING A NEW ENTRANT IN THEIR COUNTY
ARE SEEING A NET DECREASE IN CARRIERS IN THEIR COUNTY3
ARE SEEING A NET INCREASE IN CARRIERS IN THEIR COUNTY3
63% 47%
41% 16%
WITHDRAWALS IN 2016 FROM COUNTIES BY STILL PRESENT ELSEWHERE IN STATE2
275 NEW 2106 ENTRANTS TO COUNTIES WITH EXISTING PRESENCE ELSEWHERE IN STATE2
631= 10 CARRIERS
As of 11.04.2015
Mix of carriers is continuing to change.
16% of consumers are seeing an increase in carriers, and nearly half of consumers are seeing a new entrant.
2016 exchange market remains in flux: Evolution of carriers and offerings I Page 1 of 4
2016 exchange market remains in flux: Evolution of carriers and offerings continued
McKinsey Center for U.S. Health System Reform
PLAN OFFERINGS5
MARKET VIEWCounting plans at a county level
BY PLAN TYPE
BY PLAN NUMBERThousands (000s)
126plans in
2015
59plans
terminated46
plans added
113plans in 2016
38of which
are bronzeand silver
33of which
are bronzeand silver
20152016
2015 2016
56% UNMANAGED 44%
MANAGED
46% UNMANAGED
54%MANAGED
The plan type mix is becoming more managed.
2016 exchange market remains in flux: Evolution of carriers and offerings I Page 2 of 4
TOTAL 2016 EXCHANGE CARRIERS 314
Mix of carriers is continuing to change.
% SEEING INCREASE IN PLANS BY METAL TIER
The lowest-income consumers are seeing the fewest competitively priced plans.7
The plan type mix is becoming more managed.
2016 exchange market remains in flux: Evolution of carriers and offerings continued
McKinsey Center for U.S. Health System Reform
BY PLAN NUMBER6
BY PLAN TYPE
31%of consumers are seeing
more plans in 2016
59%of consumers are seeing
fewer plans in 2016
Consumers <200% FPLhave, on average, 1.7competitively priced silveroptions available to them
% SEEING INCREASE IN PLANS BY METAL TIER
36% silver
13% platinum
33% bronze
29% gold
27% catastrophic
Consumers 200-400% FPL have, on average, 3.8competitively priced silveroptions available to them
Consumers >400% FPL have, on average, 5.2competitively priced silveroptions available to them
% SEEING DECREASE IN PLANS BY METAL TIER
49% silver
64% platinum
53% bronze
55% gold
29% catastrophic
BY SILVER PLAN VALUE7
36% are seeing morecompetitively pricedplan options7
36%are seeing fewer competitivelypriced options7
28% see no change
% of consumers
45%consumerssee more managed options in 2016
44%consumerssee fewermanagedoptions
21%consumerssee moreunmanaged options
64%consumerssee fewer unmanaged option
+ +
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2016 exchange market remains in flux: Evolution of carriers and offerings I Page 3 of 4
CONSUMER VIEW4
Counting plans at a county level
Most consumers are seeing less plan choice, although some are seeing more competitively priced options.
McKinsey Center for U.S. Health System Reform
BY INCOME LEVEL
The lowest-income consumers are seeing the fewest competitively priced plans.7
McKinsey Center for U.S. Health System Reform
METHODOLOGYThe above findings are based on publicly available, approved 2016 individual market exchange rates as displayed on exchanges for all states and DC, compiled within the McKinsey Exchange Offering Database.
1 Carrier is defined as an insurance company2. Counting carriers unique at county level3. 43% of QHP eligible are seeing no net change in carriers in their county4. Consumer defined as all individuals eligible to purchase qualified health plans in the states analyzed5 Plan is defined as a health insurance offering in which an individual can enroll, offered by a carrier6. Percentages do not equal 100% as some consumers will see no change in number of plans7. Competitively priced defined as net premium within 10% of the lowest-price silver plan
healthcare.mkinsey.com/reform
McKinsey Center for U.S. Health System Reform2016 exchange market remains in flux: Evolution of carriers and offerings I Page 4 of 4
McKinsey Center for U.S. Health System Reform
